Indian equity markets opened lower on Tuesday as metal stocks faced pressure following US President Donald Trump’s announcement of 25 per cent tariffs on steel and aluminum imports, while the rupee hit a record intraday low of ₹87.96 against the dollar.
The benchmark BSE Sensex was trading at 77,187.89, down 123.91 points or 0.16 per cent in early trade, while the broader NSE Nifty declined 43 points or 0.18 per cent to 23,338.60. The Nifty Metal index dropped 3 per cent in the previous session despite the US Dow Metal Index gaining 3 per cent.
Adani Enterprises led the gainers, surging 3.85 per cent to ₹2,379, followed by Grasim Industries which rose 1.92 per cent to ₹2,520.85. Adani Ports, Hindalco, and Infosys also showed strength, gaining between 0.94 per cent and 1.10 per cent. On the flip side, Eicher Motors was the top loser, falling 5.07 per cent to ₹5,065, while Apollo Hospitals declined 3.57 per cent to ₹6,520. Coal India, Power Grid, and Kotak Mahindra Bank also traded lower, dropping between 1.31 per cent and 1.42 per cent.
“The significant trend in the ongoing bearish phase is the outperformance of largecaps over the broader market,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. He noted that while the Nifty is down only 1.52 per cent year-to-date, the Nifty Midcap and Smallcap indices have declined 8.6 per cent and 11.3 per cent respectively.
The Reserve Bank of India’s decision to double its open market operations purchase to ₹40,000 crore for February 13 is expected to boost banking sector liquidity. Banking stocks will be in focus following this announcement.
Several companies reported strong quarterly results, including Apollo Hospitals, Patanjali, Nalco, and Nykaa. “The relentless selling by FIIs in largecaps has made their valuations fair while the valuations of mid and smallcaps continue to be excessive,” Vijayakumar added.
The market sentiment remains cautious ahead of US Federal Reserve Chair Powell’s Congressional hearings today and upcoming US inflation data. Foreign Institutional Investors (FIIs) were net sellers of ₹2,463 crore on February 10, while Domestic Institutional Investors (DIIs) bought equities worth ₹1,515 crore.
In the commodities market, gold hit a record high of $2,936 per ounce, up 2 per cent, as haven demand increased following the US tariff announcement. Brent crude gained 1 per cent to $76 per barrel on tighter Russian supply concerns.
“The USD/INR surging to a record intra-day high of nearly ₹88 has contributed to market volatility,” said Vikas Jain, Head of Research at Reliance Securities. “While the market may adjust to trade tariff concerns, intra-day volatility could persist.”
Technical analysts suggest caution. “The current market structure is weak, with a fresh sell-off possible if the 20-day SMA or 23,300/77000 is rejected,” noted Shrikant Chouhan of Kotak Securities. The Nifty faces key resistance at 23,460, while immediate support lies at 23,260.
Investors are also monitoring Prime Minister Modi’s visit to Paris for the AI Action Summit and his upcoming meeting with President Trump in the US to discuss trade and defense matters.
